Key Point:
- VanEck analysts predict that the potential market capitalization of the Ethereum Layer 2 scaling network will reach $1 trillion by 2030.
- Analyst patrick bush Matthew Sigel predicts that TVL for Layer 2 networks will increase significantly over the next few years.
- The report predicts that Ethereum will control more than 60% of the market share across all public blockchains.
In an April 3 report, investment manager VanEck predicted that Ethereum's Layer 2 scaling network could reach a market cap of $1 trillion by 2030. Analysts Patrick Bush and Matthew Siegel highlighted the network's ability to increase blockchain scalability and efficiency.
Furthermore, analysts predicted that Ethereum would control more than 60% of the overall market share of all public blockchains. Bush and Siegel commented on the main focus of Layer 2 blockchain, elaborating that it intends to face Ethereum's main challenges: “limited data processing, storage, and computing power.” They added:
“Ethereum’s dominance in smart contracts faces a significant hurdle: scalability. The network offers unparalleled security and decentralization, but transaction fees and processing times skyrocket as usage increases. .”
VanEck's report spanned various aspects of the Layer 2 ecosystem, including developer experience, user experience, trust assumptions, transaction pricing, and ecosystem size. Layer 2 technologies such as Optimistic Rollup and Zero Knowledge Rollup are reportedly specialized in solving Ethereum's scalability concerns.
Additionally, analysts expect the Total Value Locked (TVL) of Layer 2 blockchains to see an incredible surge. According to the report, L2 within the Ethereum ecosystem is poised to control a significant portion of the transaction value and his TVL.
The report also sheds light on the uncertain future of layer 2 token valuations. Analysts commented on the long-term value of most L2 tokens, claiming that the top seven Ethereum-based L2 tokens boast a fully diluted valuation of $40 billion. They added that blockchain could launch more projects in the coming months, reaching a valuation of $100 billion.
